The Union Cabinet on Wednesday gave its approval for the disinvestment of three ITDC hotels at Bhopal, Bharatpur and Guwahati.
Announcing the Cabinet decision, Finance Minister Arun Jaitley said that the Indian Tourism Development Corporation (ITDC) would offload its 50 percent equity in Ashok Bhopal and Brahmaputra Ashok Guwahati in favour of the state governments of Madhya Pradesh and Assam, respectively. In case of Ashok Bharatpur, ITDC, which manages the hotel, will hand over the management control to the Rajasthan government.
The states, he added, will have the option to upgrade and operate the hotels by involving private companies or to utilise the properties as per their requirements.
The decision has been made keeping in view the dictum that running and managing hotels on professional lines is not the work of the government or its entities, an official spokesperson said in a tweet.
LIVE: #Cabinet approves initiation of disinvestment of #ITDC properties pic.twitter.com/hWBLSYEsC9
Jaitley also said that the Assam government may develop Ashok Brahmputra hotel at Guwahati as a guest house as there are many private hotels in the state capital.
ITDC is exiting hotels in tandom with the government's disinvestment policy.
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